Posted 4/2/2024, 7:28:14 PM
Market Bets on Fewer Rate Cuts Than Fed, Yielding Higher Treasury Rates
- Market and Fed briefly aligned on pace of rate cuts, but not for long; Treasuries investors now paying the price
- Investors flipped to betting on fewer 2024 rate cuts (65bps) than Fed (75bps), driving up Treasury yields
- Shift came after strong economic data suggested less need for rate cuts
- June rate cut now seen as less likely, with market conviction fading
- Fed speakers and upcoming jobs data will help determine if/when cuts come